USD/CNH Forecast: Bullish exhaustion

• The USD/CNH hourly chart shows a bearish price-relative strength index (RSI) divergence.
• The bull may have a breather before further upside unfold.
• China is increasingly favoring a weaker currency so as to help the economy absorb the shocks from US-China trade war.

Hourly chart

Spot Rate: 6.60

Daily High: 6.6160

Daily Low: 6.5759

Trend: Minor pullback likely

Resistance

R1: 6.6321 (Dec. 12 high)

R2: 6.6524 (Nov. 20 high)

R3: 6.6626 (Nov. 10 high)

Support

S1: 6.5759 (session low)

S2: 6.5456 (5-day moving average)

S3: 6.4987 (10-day moving average)